Long-term reversals in corporate bonds are economically and statistically significant in a comprehensive sample spanning the period 1977 to 2017. Such reversals are stronger for bonds with high credit risk and more binding regulatory, capital, and funding liquidity constraints. Bond long-term...

We examine the role of macroeconomic uncertainty in the cross-section of corporate bonds and find a significant uncertainty premium for both investment-grade (0.40% per month) and non-investment-grade (0.81% per month) bonds. The economic uncertainty premium declines as we progressively remove...

A significant fraction of firms' financing occurs via public debt markets. Accordingly, we investigate whether financial statement characteristics and other variables that predict equity returns also predict corporate bond returns. Profitability, asset growth, and equity market capitalization...